Ex-Fed Boss Greenspan Says ‘There is No Barrier’ to Treasury Yields Falling Below Zero

by Mark DeCambre
Market Watch

‘There is no barrier for U.S. Treasury yields going below zero. Zero has no meaning, beside being a certain level.’ – Alan Greenspan

There is some $15 trillion in government debt that now yields less than zero, and former Federal Reserve Chairman Alan Greenspan believes there’s no reason why U.S. government bond yields couldn’t join much of the developed world in the subzero world.

Greenspan, during a phone interview with Bloomberg News on Tuesday, said “zero” has no real meaning for the U.S. bond market and that a slide below that psychological level, already traversed by many others countries, wouldn’t be inconceivable for U.S. paper.

The 93-year-old economist’s comments come as more Wall Street participants contemplate the very real possibility of negative Treasury rates.

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